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Taking a look at Income-Generating Investments in a Rising Interest Rate Environment
Income-generating investments are used to provide exposure to a variety of securities, as well as deliver income. In other words, an alternative to using only traditional GICs or bond funds to receive income. With interest rates at low levels many investors and some experts seem to agree that a period of moderately rising interest rates is not far off the horizon.


You can create your own Index-Linked GIC - A how to case study guide
Now that we understand the basics of index linked GICs, we can describe the steps to create your own index linked GIC.


Extend and Blend - Its a new retirement investment term, not something you do at the hairstylist!
GIC type term investments are selected by investors seeking security for their money, predictable rates of returns over a specified period; these are the main advantages of a GIC. In return for the security and fixed interest guarantees, however, investors usually give up flexibility and liquidity; these are a GICs limitations.


Index-Linked GICs offer higher growth potential - the ins and outs
Conventional GIC products provide guarantees of your invested capital as well as a guaranteed return on your capital. There is a new breed of GIC products that continue to guarantee your capital from losing money but provide some variability in terms of your investment return. These products are commonly known as index linked GICs.


Maximizing returns on GIC investments, compounding and escalating interest rates
Start early and invest often - The longer your investments have to grow, the more opportunity you have to reap the benefits of compound interest - is a standard investment mantra.


Forget to renew your deposits?
Neglecting your term deposits can be costly. Forget to provide your financial institution with renewal instructions on your GIC or RRSP/RRIF and you might find that your matured deposits have been automatically renewed for the original term or for a year - or dumped into a low-interest savings account. Within the terms of your deposit agreement you may have already agreed that the financial institution can do any of the above with your investment, or leave it without earning any interest!


GIC Laddering offers investors flexibility, liquidity
Investors looking for safe havens often turn to guaranteed investment certificates (GICs), but in many cases they do so without realizing that these investment products can inject flexibility and liquidity as well as security into their portfolio. Beyond offering a guarantee of principal and a fixed rate of return, frequently ignored benefits of wisely managed GICs can include penalty-free access to a source of income just when it's needed, and the elimination of guesswork in relation to fluctuating interest rates.


2002 Ontario Savings Bonds Information
Historically, rates on this type of Government Bond are priced somewhat lower than competing GICs rates offered by the major banks and Trust CO's. To compare the new bonds with their competitors the enclosed onsite crosslinks will help with that comparison. The provincial bonds are 100% guaranteed by the Ontario Government. Minimums start at $100, to a maximum of $500,000, with 3 options available. All are available with annual or compound interest.


GICs: A new take on a tried and true investment
Guaranteed Investment Certificates (GICs) have always been a popular choice among those looking for a low risk interest-earning investment vehicle to add to their portfolio. However, long gone are the days when GICs offered investors little more than a safe place to keep their money.


New twist to Convertible GICs - Buy Mutual Funds; write cheques
Over the past several years competition in the mutual fund industry has largely been based on companies adding new and often more exotic types of funds to their families or marketing "star" managers. Recently however have seen the introduction of new products within the industry as well as enhancements on some existing products that will provide investors with more variety. One new product is a GIC that is convertible to a mutual fund prior to maturity while improved products include free chequing.


Do your homework before buying index linked GICs
It seems that most large institutions have geared their current GIC marketing towards stock linked or index linked GICs. Most of the advertisements lure your attention with the potential to earn investment rates of return based on any one or more stock indices with the comfort of knowing that your principal is guaranteed.


Fixed-income investments have a lot to offer
If you're looking for a place to invest your money, but don't want a great deal of risk, GICs and CSBs aren't your only options - and not necessarily the best ones, either. While the principal and interest of GICs are insured up to a point, these investments may not provide you with the return you want for your hard/earned cash.


Look into Government Bonds
As an example advertisements for Government Bonds that offer higher yields in a current market where 5 year bank GIC rates seam under priced. The question usually is whether or not the bonds would be a good buy for them.


Strip bonds - Are they really the investment for you?
There have been several articles in recent issues of a seniors magazine enthusiastically supporting Strip Bonds. We have fielded a lot of questions from clients on this subject and felt it would be appropriate to clarify some points about this type of investment vehicle.


The lifetime Term Deposit
A practical alternative to GICs, T-Bills and Mortgage Backed Securities. With the recent volatility in interest rates, one of the questions we are being asked by our clients is, "what do I invest my money in to produce a retirement income that will maintain my standard of living?" Living expenses have not gone down, in fact government related services and utilities have gone up.


What is the best fixed term to invest for with rates so low?
Very few people other than The Great Zambini or your fairy godmother can accurately predict how long interest rates will remain at a particular level or the future direction of such rates. Unless you have access to infallible data, the best course of action in almost all cases is to stagger the maturities of your investments over several years.





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GICs and
Fixed Income
Taking a look at Income-Generating Investments in a Rising Interest Rate Environment

Index-Linked GICs offer higher growth potential - the ins and outs

Extend and Blend - Its a new retirement investment term, not something you do at the hairstylist!

You can create your own Index-Linked GIC

Forget to renew your deposits?

GIC Laddering offers investors flexibility, liquidity

2002 Ontario Savings Bonds Information

GICs: A new take on a tried and true investment

New twist to convertible GICs - Buy Mutual Funds; write cheques

Do your homework before buying index linked GICs

Fixed-income investments have a lot to offer

Look into Government Bonds

Strip Bonds - Are they really the investment for you?

The lifetime Term Deposit

What is the best fixed term to invest for with rates so low?

How do GICs compare with NHA Mortgage Backed Securities?



The Companion Advisor:
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Fixed Income